CO129-375 - Governor Sir Lugard - 1911 [1-2] — Page 338

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onsideration.

329

Claims of this nature can only be based on an ssumption that British merchants will be driven to Hongkong because here is no other course open to them, but I do not see why they

hould be insisted on as they cannot benefit the Colony and would im-

pose conditions prejudicial to British trade. Indeed I am strongly of

pinion that a Colonial Ordinance which incorporated them should not le enforced extra-territorially by Order in Council.

Before these propositions had been put for-

ward I had enunciated two principles, to which, without venturing an

pinion as to their legal merits, Sir F. Lugard was ready to agree. If

hey are frankly accepted I think the necessity for a British registry In Shanghai would be obviated.

1.

They are:-

Neither the Hongkong Courts nor the British

ourts in China should for any purpose other than winding-up exercise jurisdiction outside its own jurisdiction, and that for winding-up

urpose they should be auxiliary to one another.

2.

The terms on which we should adopt the Hong- kong law should be, that the Hongkong Ordinance, when it becomes law, hall by Order In Council be made the British Company law for China. Hor Jongkong Companies carrying on business either wholly or in part in hine should be considered to be registered within the jurisdiction f His Majesty's Supreme Court for China as well as in Hongkong; and e subject to the British Courts in China as if they were registered

in China.

There is besides one position which requires onsideration; it is that of a Hongkong Company carrying on business xclusively in China, which is used in Hongkong. It seems to me that hen the whole of the Company's business is in China, a judgment ob- tained in Hongkong ought not, unless the Company has appeared and Contested or admitted the claim in the Hongkoné Court to be enforced by the British Courts in China without the Company having an opportunity

of